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Budget of 362 mln. euro for gas production of energy in the thermal sector

31 May 2024

The guide related to the state aid scheme which finances with almost 362 million euros the development of gas production capacities for the production of electricity and thermal energy in high-efficiency cogeneration (CHP) in the district heating sector was launched on Thursday by Ministry of Energy.

According to a press release of the competent ministry, the eligible beneficiaries are: enterprises that produce electricity and thermal energy in cogeneration in the centralized heating system – large, medium or small enterprises; Administrative-Territorial Units/administrative-territorial subdivisions defined according to the legal provisions in force.

“Investments in technologies for a safe and less polluting energy are my priorities stated right when taking over the mandate. Romania has set brave targets in this area of ​​decarbonization. Not a few questioned the ability of the Ministry of Energy to put the 16 billion euros from the Modernization Fund, but the sustained pace at which my colleagues are working puts European money in motion. As a result of these investments, the production cost of the heating agent decreases, which will be felt directly in the citizen’s pocket and also, a better efficiency of the supply of heat and hot water will be ensured”, emphasized the Minister of Energy, Sebastian Burduja.

The objective of the new guide is to achieve national targets regarding the modernization and construction of high-efficiency cogeneration plants, as well as the modernization of district heating networks, being the second launch in this field, after the Networks Guide, which was promoted at the beginning of this year.

The total budget allocated to the call amounts to 361.950 million euros. The money comes from the Modernization Fund – through Key Program 5: High Efficiency Cogeneration and Modernization of Heating Networks.

The value of the state aid is 100% of the additional net cost (financing deficit), which must be determined by comparing the profitability of the factual scenario with that of the counterfactual scenario.

State aid granted for projects aimed at investments in energy-efficient central heating and cooling systems will only be granted if they have a stimulating effect and respect the principle of starting the works, states the Ministry of Energy.




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